Suzuki gears up to enter new segments

Suzuki, which is the majority shareholder in domestic car market leader Maruti Udyog, has said its fully-owned two-wheeler subsidiary, Suzuki Motor India (SMIPL), will venture into the fast-growing segments of high-powered motorcycles and ungeared scooters.

SMILP will invest Rs 320 crore in capacity expansion and new launches, taking its cumulative investment in the country to Rs 550 crore.

The company now offers only two bikes, Heat and Zeus, both fitted with a 125cc engine and the new launches are expected to widen its product portfolio in the Indian market.

Said Satya Sheel, the company's managing director: "We will expand our capacities gradually in the Indian market to corner a double-digit market share in the next three-four years, first with the launch of ungeared scooters in the 125cc-150cc segment, followed by high powered bikes in over 150cc segment."

SMIPL, about a year since it launched its motorcycles in the country, has not been able to make much headway in the market. At present, it has a meagre 0.8 per cent share of the market.

SMILP, despite having an installed capacity to manufacture 100,000 vehicles, sold a little over half that number between April and December last year and 5,753 units in January this year.

Its earlier technology partner, Chennai-based TVS Motor, sold over a million two-wheelers till December last year.

Kutsumi Takata, the joint managing director of SMIPL, said: "The demand for high-powered bikes is increasing. Our premium bikes in the 150cc category and un-geared scooters will cater to the new generation and will be out in a few months after the feasibility studies are completed. We are determining the right product mix for the Indian market in order to be a volume player in the long run."